Real Estate Insurance Terms - I

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I-BEAM - An iron or steel structural framing member, in cross-section forming the letter I.

IDEM SONANS-Sounding the same. Legally, names improperly spelled need not void an instrument, provided the written name sounds the same as the correctly spelled name, and there is no evidence of any intent to deceive by incorrect spelling.

IGNEOUS ROCK - Rock produced by the cooling of magma within the earth (plutonic rock) or on the surface (volcanic rock).

IMMOVABLE - Used frequently in definitions of real estate, things which cannot be move such as land, buildings, etc.

IMPERIAL GALLON - A measure of 277 cubic inches, as opposed to the 231 cubic inch standard gallon.

IMPLIED AGENCY - An agency which is not expressly set out but must be deduced from the circumstances and other facts. It is an actual agency as opposed to an ostensible agency or agency by estoppel.

IMPLIED CONTRACT - A binding contract created by the actions of the principals, rather than by written or oral agreement of the parties.

IMPLIED LISTING - An implied contract which would be governed by contract law, including the statute of frauds.

IMPLIED NOTICE - A form of actual notice not expressly given. For example: "A" purchases property from "B". "C" is in possession. "A" will have implied notice that "C" may have an interest in the property if reasonable observation and inquiry on the part of "A" would have disclosed the interest of "C".

IMPOUND ACCOUNT - Account held by a lender for payment of taxes, insurance, or other periodic debts against real property. The mortgagor or trustor pays a portion of, for example, the yearly taxes, with each monthly payment. The lender pays the tax bill from the accumulated funds.

IMPROVED LAND - Land having either on-site improvements, off-site improvements, or both.

INCHOATE INSTRUMENT - An unrecorded instrument (such as a deed) which is valid only between the parties and those having actual notice; but not against "the world" as it would be after recording.

INCINERATOR - A heavily insulated, furnace-like device for burning rubbish, giving off a minimum of heat and smoke, and burning the rubbish more completely than an open fire.

INCOME PROPERTY - Property which produces income, usually from rental. May also include any property not entirety owner-occupied.

INCREASING AND DIMINISHING RETURNS - An economic theory that an increase in capital or manpower will not increase production proportionately (five workers may do less than five times the work of one worker; and two workers may do more than twice the work of one worker). When the increase in production is proportionately greater than the addition, there is an increasing return; when production is proportionately less than the addition, the return demises.

INCUMBRANCE (ENCUMBRANCE) - A claim, lien, charge or liability attached to and binding real property. Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title.

INDENTURE DEED - A deed executed by both grantor or grantee, containing reciprocal agreements (grant or obligations).

INDEPENDENT APPRAISAL - An appraisal by one who has no interest in the property or nothing to gain from a high or low appraisal.

INDEPENDENT CONTRACTOR - The term is most important as used to describe the relationship of broker and salesperson. The salesperson is either an employee or independent contractor. If an employee, the broker must withhold income tax and pay social security, provide workman's compensation when applicable and may be liable for some negligent acts of a salesperson while on the job, such as automobile accidents. The broker avoids all of these responsibilities if the salesperson is an independent contractor. The greater the control over the salesperson, the more likely the salesperson will be considered an employee. Some examples of this control would be required office hours or attendance at regularly scheduled meetings, as well as payment or reimbursement by the broker for license fees, auto expenses, etc.

INDEXING - To alter mortgage term, payment, or rate according to inflation and/or a suitable mortgage rate index.

INDIRECT CONSTRUCTION COSTS - Those costs other than labor and materials, such as administrative costs, financing costs, taxes and insurance, loss of interest on money invested, etc.

INDIRECT LIGHTING - Lighting by means of reflecting the light of the ceiling, wall, or other reflector, in order to soften glare.

INDORSEMENT (ENDORSEMENT) - The act of the holder of a note, bill, check, or other negotiable instrument, of assigning said instrument by signing the back of the instrument, with or without qualifications.

INDUSTRIAL PARK - A subdivision in the pattern of residential subdivisions, except catering to the needs of industry. Off-site improvements may have stronger roads, heavy plumbing and wiring, wider streets for trucks, rail spurs and other necessities for industry.

INDUSTRIAL PROPERTY - (1) Land which is zoned industrial. (2) Real property improved specifically for industrial use.

INDUSTRIAL TAX EXEMPTION - An exemption from local property taxes granted to encourage industries to come into an area. Has been used successfully in the South. Usually granted for a definite period.

INFLATION - The expanse or increase in an economy over its natural growth. Usually caused by over printing money and over-extending credit. Marked by a rapid increase in the price of goods.

INGRESS AND EGRESS -A right to enter upon and pass through land.

IN GROSS - Personal rather than attached to land. An easement in gross has no dominant tenement.

INHERITANCE - In a legal meaning, real property, obtained by law rather than by will; generally misused to mean anything which comes from a deceased person.

INHERITANCE TAX - A tax on the transfer of property from a deceased person; based on the right to acquire the property rather than the property itself.

INJUNCTION - An order by a court preventing one from acting or restraining one from continuing some action.

INLET - A narrow waterway extending inland.

INNER CITY - A term of no exact meaning but having the connotation of a low economic, high crime area of a large city, rather than merely the geographical area of a city.

INNOCENT PURCHASER FOR VALUE - Another term for one who purchases in good faith or a bona fide purchaser. The innocent part refers to no prior knowledge (actual or constructive) of unrecorded interest in the property, such as a prior sale to a third party of a loan secured by the property. The for value part refers to a valuable consideration paid by said purchaser for the property.

IN PERPETUITY - Of endless duration; forever.

IN PERSONAM - Directed at specific persons rather than against property or generally for all people.

IN RE -- In the matter of.

IN REM - Pertaining to property or people in general.

INSIDE LOT - Not a corner lot.

INSOLVENCY - Generally applied to a person, corporation, bank, etc., when there is an inability to pay debts as they become due or within a reasonable time after.

INSPECTION -An examination of property for various reasons, such as a termite inspection; inspection to see if required repairs were made before funds are released, etc.

INSTALLMENT CONTRACT - A method of purchasing by installment (usually monthly) payments. When referring to real property, it is usually called a land contract.

INSTITUTIONAL LENDERS - Banks, savings and loan associations and other businesses which make loans to the public in the ordinary course of business, rather than individuals, or companies which may make loans to employees.

INSTITUTIONAL PROPERTY - Property, the use of which is created by law, such as schools or hospitals. May also refer to corresponding private properties, such as private schools and hospitals.

INSTRUMENT - Any writing having legal form and significance such as a deed, mortgage, will, lease, etc.

INSULATION - Materials used for their qualities of hindering the passage or transmission of sound, cold, heat or electricity.

INVESTMENT YIELD - The gain from an investment in real property, including both income and resale. Expressed as a percentage of the amount invested.

INVOLUNTARY CONVEYANCE - A transfer of real property without the consent of the owner, such as by a divorce decree, by condemnation, etc.

INVOLUNTARY LIEN - A lien, such as a tax lien, judgment lien, etc, which attaches to property without the consent of the owner, rather than a mortgage lien, to which the owner agrees.

IRA (INDIVIDUAL RETIREMENT ACCOUNT) - Savings programs available to individuals. These plans allow for a certain amount to be deposited each year. This money is not subject to income tax for that year or following years as long as it is not withdrawn. The money is taxed as withdrawn upon retirement, usually when the depositor is in a lower tax bracket. During the life of the account, the money may be put into various interest bearing investments. Securities dealers as well as banking institutions now offer IRAs.

IRONCLAD CONTRACT - A term of not legal meaning, being a contract which is considered strong (as iron) and hard to break.

IRREVOCABLE - That which cannot be revoked, such as certain trusts, contracts and other legal relationships.

IRRIGATION - Watering, usually be means of pipes, to increase the fertility of ground in areas where additional moisture is needed for crop growth.

ISLAND - (1) Land surrounded by a body of water. (2) A space between oncoming lanes of a highway, used by pedestrians or as a safety buffer between oncoming traffic.

ISOHYETAL LINE - A line on a map connecting areas which have approximately the same rainfall or thunderstorm activities.